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Union Bank of India’s share price took a hit on Wednesday (July 9, 2025), dropping over 4 per cent to around Rs 144.
The trigger? A cautious Q1 business update that spooked the Street. It’s a reality check for investors who’ve enjoyed a 25 per cent rally in the last three months. Suddenly, that momentum’s feeling a bit shaky.
What just happened?
The stock slipped sharply after the bank’s Q1 FY26 business update flagged slower sequential growth in key areas. Deposits grew, but the mix of low-cost CASA deposits shrank. For a bank, that’s a red flag, as it can squeeze margins.
The selloff was swift, with the stock falling from over Rs 150 levels to Rs 144 intraday.
About the bank
Union Bank is one of India’s top public sector lenders, with a massive reach: Over 8,600 branches and 8,900+ ATMs, serving more than 150 million customers. After merging with Andhra and Corporation Banks in 2020, it became even more formidable in the PSU banking space. It handles everything from retail and corporate banking to treasury, insurance and digital services.
Below is a table summarising the company’s fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 1.15 lakh crore |
| P/E ratio | 6.4 |
| P/B ratio | 1.1 |
| ROE | 16.7 per cent |
| ROCE | 21.3 per cent |
| EPS | Rs 23.6 |
| Book value | Rs 141.8 |
| Dividend yield | 3.2 per cent |
Value Research Online ratings
- Overall: 3/5
- Quality: 2/10
- Growth: 5/10
- Valuation: 6/10
- Momentum: 8/10
What’s the market saying?
The near-term worry is clear: Slowing CASA growth and pressure on deposits could hurt net interest margins. And when PSU banks start flashing early signs of weakness, traders don’t wait around.
But long-term investors might see today’s fall as noise. The bank still boasts solid return ratios and a steady dividend. However, if the slowdown deepens, the stock may drift further before bargain buyers return.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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